October WTI crude oil (CLV26) closed at $90.26, up $0.79 (+0.88%), while October RBOB gasoline (RBV26) fell to $3.09, down $0.0313 (-1.00%) on Wednesday. Crude oil prices reached a new six-week high amidst escalating tensions between the US and Iran, including US military strikes targeting Iranian capabilities and Iranian drone attacks on US bases across the Middle East.
The Energy Information Administration (EIA) reported that US crude oil inventories unexpectedly dropped by 4.45 million barrels, contrary to predictions of a 60,000-barrel increase. Meanwhile, crude oil passing through the Strait of Hormuz reached 17 million barrels on Monday, easing supply concerns despite conflict in the region.
In other data, US crude production rose to 13.862 million barrels per day, matching a record high from November 2022. OPEC’s production also rose to 19.44 million barrels per day in July, regrouping after earlier cutbacks. This increase comes amidst concerns of additional supply disruptions from Russia and ongoing tensions in the Middle East.
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